(Boston) — Temu, the rapidly expanding global marketplace owned by China’s PDD Holdings, is challenging long-established e-commerce giants Amazon and Walmart for the loyalty of online sellers. With its aggressive pricing strategy, low commission structure, and global logistics network, Temu is positioning itself as a serious contender in the highly competitive world of third-party marketplaces — a segment that now drives more than half of global e-commerce sales.
A Fast-Growing Rival in Global E-Commerce
Launched in 2022, Temu has expanded into over 90 markets and attracted millions of active buyers, outpacing many newer entrants in scale and visibility. For sellers, Temu’s promise is straightforward: lower fees, faster onboarding, and exposure to a growing international customer base without the steep costs associated with platforms like Amazon and Walmart Marketplace.
Amazon charges sellers a standard 15% referral fee per sale, with additional fulfillment and storage costs through its Fulfilled-by-Amazon (FBA) service. Walmart’s marketplace, while competitive, imposes strict entry requirements and performance standards that can deter smaller sellers. Temu, by contrast, takes a 5%–10% commission and covers marketing, logistics, and transaction processing, making it one of the most accessible and cost-efficient options for new entrants.
The Appeal for New and Small Sellers
Temu’s structure particularly appeals to small businesses and first-time e-commerce operators seeking rapid entry into global trade. Sellers can upload listings, set pricing, and begin reaching buyers in multiple countries within days — a process that takes weeks or months on larger marketplaces that require tax documentation, shipping integration, and inventory validation.
For smaller merchants, Temu’s ability to provide end-to-end fulfillment through partners such as 4PX, YunExpress, and DHL eCommerce removes the need for warehousing or complex logistics planning. This “plug-and-play” model lowers the technical and financial barriers to entry that have long favored established Amazon sellers.
Competing Through Price and Reach
Temu’s competitive edge lies in its cost efficiency and international reach. The marketplace leverages PDD Holdings’ deep supply-chain relationships in China and Southeast Asia to offer factory-direct pricing, undercutting traditional retail margins. This allows Temu to maintain the low prices that attract millions of value-driven shoppers — and in turn, gives sellers access to higher sales velocity.
Amazon and Walmart continue to dominate in premium and fast-shipping categories, where brand reputation and trust are paramount. But Temu’s strength lies in high-volume, low-cost product categories such as fashion, home goods, beauty, and electronics accessories — areas where price elasticity and product diversity matter more than brand recognition.
Challenges to Overcome
Despite its rapid growth, Temu faces structural challenges before it can fully rival Amazon or Walmart. Its logistics infrastructure, though expanding, remains heavily dependent on cross-border shipping networks, leading to longer delivery times than Amazon’s Prime and Walmart’s in-house fulfillment.
Additionally, Temu’s model — which emphasizes affordability — leaves thinner margins for sellers in exchange for exposure to millions of price-sensitive buyers. Sellers who specialize in premium or branded products may find limited opportunities compared to Amazon’s brand registry or Walmart’s retail integration programs.
There are also questions about long-term sustainability. Maintaining low fees and subsidized shipping costs requires substantial investment from PDD Holdings. Analysts note that Temu’s current strategy prioritizes market share and user growth over profitability — a familiar playbook from early e-commerce disruptors.
A Marketplace Disruption in Motion
Still, Temu’s rise is undeniable. Its seller-friendly model is reshaping expectations in the marketplace ecosystem, forcing incumbents to reassess their fee structures and outreach programs. For thousands of small and midsize merchants, Temu offers something that Amazon and Walmart no longer do: low overhead, fast access, and a global audience ready to buy.
As competition intensifies, Temu’s trajectory suggests that the marketplace future will not be defined by a single dominant platform but by a network of specialized ecosystems — each catering to different types of sellers and consumers.
Temu’s formula — affordability, accessibility, and international reach — has already begun rewriting the rules of online retail. The question is no longer whether it can compete with Amazon and Walmart, but how far it can push the marketplace model toward a new era of global e-commerce inclusion.
https://seller.temu.com/registration.html?merchant_exclusive_invitation_code=28f00d1853b281f9Zdf8232ccce6d6a59